updated 11:41 pm EST, Tue November 20, 2012
Judicial decision expected before end of the year
Live testimony in the patent trial between Google's Motorola Mobility and Microsoft wrapped up on Thursday afternoon, with the revelation that Microsoft will make approximately $94 billion off of Google technologies through 2017, including some backdated revenue. Motorola is seeking to make the Redmond giant pay up to $4 billion per year for its wireless and video patents, while Microsoft believes that only $1.25 million or less is owed per year.
US District Court Judge James Robart heard testimony from Michael Dansky, an expert for Google's Motorola Mobility. The $94 billion figure Google claims Microsoft has and will make from the alleged infringing of Motorola patents includes technologies no longer found in currently shipping Xbox 360 units, such as the first iteration of the external 802.11g Wi-Fi adapter. How far back Dansky was claiming revenue for Motorola Mobility was not disclosed.
Despite initially wanting open testimony for the entire trial, Judge Robart said he was bound by precedent and cleared the courtroom for two hours of testimony. Many financial records and other documents have remained sealed, contrary to initial guidance to the contrary.
Microsoft claims that the fee Motorola is demanding for its video and wireless standard patents is unreasonable, and as such, a violation of its FRAND licensing obligations. Motorola has argued that the offer is the same it offers universally, and fair value of the license should be dictated by previous contracts it has successfully negotiated with other licensees.
Microsoft is also claiming that Google agreed to grant a worldwide license as part of the MPEG LA AVC essential patent rules, under the standard rate agreement, which would also greatly reduce the amount owed Motorola if the offer is found to be valid.